This is the most basic homeowner’s policy available. HO-1 policies only covers perils that are specifically named. Some mortgage companies do not consider these to be enough. If that is the case you will need additional endorsements.
The perils covered are:
- Fire and Lightning
- Windstorm and Hail
- Vehicles(unless caused by the insured)
- Volcanic Eruption
HO-2 policies cover the property’s structure and the contents inside it. It also insures the ten perils covered in HO-1 policies and these six:
- Falling Objects
- Weight of Ice, Snow, or Sleet
- Accidental Discharge or Overflow of Water or Stream
- Sudden & Accidental Tearing Apart, Cracking, Burning, or Bulging
- Sudden & Accidental Damage from Artificially Generated Electrical Current
The HO-3 is the most common homeowner’s insurance policy. For instance, it’s because it protects against all perils except those excluded.
The HO-4 policies are renter’s insurance policies. This is a basic renter’s insurance policy and it insures the content within the property. It does not insure the property itself. HO-4 policies only cover specific perils named within them.
In HO-5 policies, all risks are on an open perils basis. Unless it is excluded on the policy, your belongings are protected.
HO-6 policies are insurance policies for condominiums and co-ops. They are also known as walls-in coverage. This is because they only protect the individual unit.
This policy provides HO-3 coverage for mobile homes.
These policies are for homes whose repair costs exceed their market values. The policies are named peril policies and generally exclude a replacement cost option.